Quote:The money Khan invested in scoreboards, locker rooms, et. al. is known as "lease hold improvements" and he does get credit for depreciation on these assets to hold the lease. In my original restaurant I bought new air conditioning units because the existing ones didn't cool it to my satisfaction.  The building owner wouldn't purchase new ones because he didn't think they were necessary. I was able to depreciate the ones I bought for his building.

 

As far as the lease itself goes, as long as he pays the rent he's fulfilling the obligations of his lease as far as I can tell. When Weaver owned the Jags the lease agreement had a clause in it that required the Jags to play all their home games at Everbank Stadium, but we now know that clause has been amended since Khan is playing home games in London. It's my estimation Khan could move the team and still pay the rent at Everbank without having to open his books.

 

Regards.........................the Chiefjag

 

Yes good point.  I thought about that too, but I was getting myself confused.  The only difference here is that the city did pay a big chunk for the upgrades.  So im wondering who has the assets on their books.  That would be like if your landlord and yourself split the cost on the A/C unit.

 

I also wonder if the "open the books" thing even applies if they just buyout the lease agreement.  Which the NFL could do if Jacksonville is not profitable.

 

Yes, the NFL shares revenue, but Jacksonville is just a segment of that pie that has its own record keeping.  If the NFL has an opportunity to relocate a team from a non-profitable area to an area with more potential, would they not do it?

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